18% GST on food takeaway from non-AC area at AC restaurant

The new Goods and Services Tax (GST) regime, which was rolled out from July 1, provides for levy of 12% on food bill in non-AC restaurants. The tax rate for AC restaurants and those with liquor licence will be 18% while 5-star hotels will charge 28% GST.PTI | August 14, 2017, 07:01 IST

NEW DELHI: A uniform GST rate of 18% will be charged on takeaways as well as food served from a non-AC area of a hotel or restaurant if any of its part has a facility of air conditioning, the government has said.

The new Goods and Services Tax (GST) regime, which was rolled out from July 1, provides for levy of 12% on food bill in non-AC restaurants. The tax rate for AC restaurants and those with liquor licence will be 18% while 5-star hotels will charge 28% GST.

The Central Board of Excise and Customs (CBEC) has clarified through an FAQ on the GST rates that will be levied by restaurant-cum-bars where the first floor area is air-conditioned and used for serving food and liquor while the ground floor only serves food and non-AC.

The CBEC said tax will have to be charged at 18% irrespective of from where the supply is made, first floor or second floor.

"If any part of the establishment has a facility of air conditioning, then the rate will be 18% for all supplies from the restaurant," it said.

With regard to tax rates that would be charged for take- away food from such restaurants, the CBEC said, "Tax has to be charged at 18% on supplies of food made from their takeaway counter."

Besides, such restaurants are also not eligible for the composition scheme as they are engaged in supplying liquor.

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